Oklahoma Release of Lien Bond |
AmeriPro Surety Bonds | 844-589-9732
Please note: Before our agency will accept and review your lien documents or provide you with an application for a mechanic’s lien bond, there is a nonrefundable $75.00 application fee. If you follow through and obtain the surety bond, that amount is deducted from your first annual premium.
Mechanic’s Liens – Oklahoma
A mechanic’s lien is a claim on a property for work which is alleged to have been performed but not paid for in full (or at all). The lien prevents the sale of the property until the lien is satisfied.
An Oklahoma release lien surety bond transfers the lien from a property to a surety bond. Doing so allows the property to be sold, refinanced, transferred, while at the same time allowing the lien holder to not lose a claim to money owed.
When the lien is transferred to the surety bond, the matter can be heard in an Oklahoma court. Depending on the final disposition of the case, the funds can be transferred to either the person who placed the lien, or returned to the person (Principal) who purchased the surety bond.
Qualifying for the Mechanic’s Lien Bond
In order to obtain an Oklahoma release of lien surety bond, according to Title 42, 147.1 of Oklahoma statutes, 125% of the amount of the lien claim amount must be the amount of the surety bond.
To satisfy this requirement with our agency, you must place 125% amount of the lien claim in cash (not property, securities, or any other equivalent) as collateral for the surety bond. The exception to this is that we will accept a Letter of Credit for 125% of the amount required; however, bear in mind that this latter is frequently difficult to obtain and can be costly. To obtain a Letter of Credit from your banking institution means you have the full cash (and probably much more).
There is also a standard surety bond application which needs to be completed, and we will require copies of any court orders stating the amount of the surety bond required.
Furthermore, information about the property in question is necessary to complete your bond. Typically the information required regarding the property includes the parcel number, location, etc. This information can be provided to you by your County Registrar’s office.
The thing to bear in mind about an Oklahoma mechanic’s lien bond is that in addition to the 125% collateral, there is the premium.
The premium will be the greater of 1% of the bond required or $500. Premiums are fully earned upon payment. The premium also renews annually on the anniversary of the bond’s issuance for as long as the underlying case is being heard in court.
Transfer of the Funds
Once the application for the surety bond is completed and reviewed, and the court order provided to our agency obtained, we will give you the green light to transfer the funds to our surety. Our agency only accepts wire transfers. We will provide you with wire instructions, which will be included with your application. Cashier’s checks, because of the potential to be lost in the mail, are not accepted.
To complete the issuance of your Oklahoma surety bond, the wire transfer must be:
- In an amount that is 125% of the mechanic’s lien;
- And include the first year premium, which is 1% of the bond amount or $500, whichever is greater.
The End of Your Case
To exonerate — or close out your surety bond, we will need a court order which clearly states the disposition of the case.
If you win your case, it can take up to several weeks before the funds are returned to you. Do not expect an immediate return of the funds. If the plaintiff is the victor, then the funds from the surety bond will be transferred accordingly.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety and court surety bonds in Oklahoma.
Our agency also provides surety bonds — including mechanic’s lien bonds – nationwide.
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